Goldman Sachs-Led Group Near Deal to Buy Perzo

Wall Street firms led by Goldman Sachs are close to a deal to create an instant-messaging service to rival that of Bloomberg LP. WSJ’s Justin Baer has details on MoneyBeat. Photo: Bloomberg.

This transcript has been automatically generated and may not be 100% accurate.

... Goldman Sachs is leading a group a Wall Street firms ... in an endeavor to build a messaging service ... of Wall Street firms being should instant messaging service ... Justin Baer wrote the exclusive story ... he is here to tell us exactly why I ... hit my father for a perfect though ... but take care of a messy makes sense to him why are they doing sure we have to go back over the last two decades and then show up for stuff out successful Bloomberg is banned in getting onto ... trading floors around the world ... and it was terminal machines of all I the the system that Karzai's the right it's the ubiquitous in any gardening the big banks we'll see them everywhere ... aam and this has allowed them to aam I hold very hard on prices ... it costs twenty thousand dollars the year ... for one terminal ... aam you can really break it up and tell car services ... aam and you can imagine this drives the bank's crazy especially after the crisis when ... aam they have so much more pressure on them ... to lower costs and revenue in many businesses and well below where they were ... two years ago ... so I you look it that stuff that that to a Bloomberg ... provides to terminal one of the most popular ... and ... a replaceable parts of it are that there is compact indications ... that systems have become ... the standard way that the traders Mikayla one another which clients ... on an ally and so ... abide by launching its um somewhat of an alternative to that ... the bank's feel that they eventually can convince on Bloomberg to begin did you bring them back to the table ... to negotiate ... some kind of ... Prescott ... this is attention to me this is not to sell it business venture that they're looking in terms of all we can turn that's not a profit on this ... it seemed that they're looking at this almost solely as a way ... to use against Cooper right wanting to spin off looking for to me ... it's got some gesso so in some cases it's it's more of the ... think in fairness it for some the firm's it's more of a financial investment ... if this takes off aam as a standalone company ... aam they could ... turn a nice profit on their initial investment ... by Tom ... the the the organizers really wanted to bring in as many financial firms as they could ... so that he had this service concert at the ground running in and quickly got to speak panel's top of the about the of the services so that the operation named Perzo was a ... present structure and so full minute ... one of the banks are popping up by this rate ... yet so they're creating editing of holding company and assuming that the legal costs are hasn't been ... reached yet aam they will create this yelled long-term buy Chris on also fold into ... that aam some internal projects that Goldman working on the corner so some kind of chat service ... to ... spot ... Howell how long until we might see this ... product you know is that as with anything in DPP could be awhile REIT's I know that Brazil itself has only been around for about two years aam you know it's it's from my folks who've done a lot of love working in various messaging ... guys founder of was that was its guide for awhile Micra soft Thomson Reuters so ... aam inability doing but but it is with any soothe new product and take a while and Yellen and the upside of that is that is that ... is that the bull market others would argue that ... it's not so simple to come and find a replacement ... aam is that the messaging system and Bloomberg is integrated with data analytics news ... aam you can show up an expert in the US um but I can imagine Bloomberg is very happy to see their their captive customer is rebelling inside Piaggio we heard a pin from them at the note not not not Fossil informally I think I aam ... you know they they ... don't have held fast and and when these these kinds of challenges in the past aam ... you know it's very delicate is as you point out there are also on their biggest clients around the world ... aam what's happened old aam sibling is a lot of markets that have moved to two more electronic ... and then use aam ... and the date of companies like on burdensome have finding more ways in which they're actually competing with their ... their customers and and aam so this is sort of ... this is the Minister for works in various stages for for a while and this is the latest ... no I don't see awkward but but the situation in which ... they find themselves ... competing with their biggest clients Iraqi illegals yellow though we run Dow Jones Newswires competing service I think you seen this ... a lot of places